RE Royalties Announces 156% increase in Quarterly Revenue - Third Quarter 2022 Financial Results
VANCOUVER, BC / ACCESSWIRE / November 30, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, reports its financial results for the three and nine months ended September 30, 2022 ("Q3 2022"). For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for Q3 2022, filed on SEDAR at http://www.sedar.com.
Key business and financial highlights of Q3 2022 include:
- Provided a secured acquisition loan of $1.3 million to Switch Power Corporation ("Switch") to acquire an operational 428 kWDC solar project located in Vaughan, Ontario. RE Royalties will also receive a gross revenue royalty of 1% on the project for the remainder of the contract term, or approximately 12.5 years and if the loan term is extended beyond the initial 6-month term, the royalty will increase to 2%.
- Provided a $1.86 million secured loan facility to ReVolve Renewable Power Corp ("ReVolve"), of which a partial advance was made subsequent to the quarter-end, to support the purchase of battery and inverter equipment for three energy storage projects, totalling 3.2 MWh of capacity, in Punta Cancun, Mexico. RE Royalties will also receive a gross revenue royalty of 5% on all revenues received on the three projects for 10 years.
- Quarterly revenue and income, including the share of income from the Company's investment in OCEP for the three months ended September 30, 2022, of $1,303,000, an increase of $794,000 or 156% over the similar period in the prior year.
- Quarterly gross profit, including changes in fair value of financial assets and share of income in OCEP, of $1,237,000, an increase of $791,000 or 177% over the similar period in the prior year.
- Year to date revenue and income, including the share of income from the Company's investment in OCEP for the nine months ended September 30, 2022, of $3,146,000, an increase of $1,781,000 or 130% over the similar period in the prior year.
- Year to date gross profit, including changes in fair value of financial assets and share of income in OCEP, of $2,910,000, an increase of $1,765,000 or 154% over the similar period in the prior year.
- Quarterly net income after income tax of $470,000 and total comprehensive income of $816,000. Year to date net income after income tax of $146,000 and total comprehensive income of $578,000.
- Cash and cash equivalents of $8,345,000, including restricted cash.
Subsequent to the end of Q3 2022:
- In October 2022, the Company provided Delta Energy Partners ("Delta") with a USD$3.9 million secured loan and royalty facility. Delta is a provider of Energy-as-a-Service ("EaaS") solutions to customers in Puerto Rico and the loan will finance the procurement and installation of energy efficiency and building energy equipment.
- In November 2022, the Company's green bondholders approved by way of extraordinary resolution, to modify the debt to equity ratio per the bond indenture from 1:1 to 3:1. This will allow the Company to increase its use of debt to fund new assets.